Federal Taxes Not Being Taken Out

I can see how important it is for the Federal taxes to be taken out. I'll guide you on how to fix this from happening again, ReneeE.

One of the main reasons why taxes aren't deducted it's because the employee doesn't have enough wages to meet the minimum threshold or the gross wages as per the last payroll are too low.

Secondly, if you haven't updated your payroll to the latest release, I'd suggest doing so. This will prevent payroll issues and download the most current tax rates and calculations in your account. To do so, follow the steps outlined below:

1. Go to the Employees' menu
2. Select Get Payroll Updates.
3. Tick the Download Entire update checkbox.
4. Click Update. A window appears when the download is complete.
   

You can also end up with this issue if the total annual salary of the employee is more than the salary limit. A wage base limit is a per-employee cap on the earnings that are taxable. Once an employee reaches the cap, taxes may stop or increase.

While you're unable to personally modify wage base limits, you'll have to update them every year. Remember, wage base limits are updated by the tax table. So it's proper and a must that your payroll tax table is updated.

You may want to stay at the top of your payroll wage bases and limits for federal or state taxes, check out this article for more details: Understand payroll tax wage bases and limits.

To get a closer look at your business finances and payroll, I've added this resource for more information: Run Payroll Reports.

Please keep in touch if you have any questions about federal taxes. I'll be one post away If you need further assistance.

I appreciate you getting back to me. I was able to get it figured out after doing some research. I did have my payroll updated. This one employee I am going to have to keep track of because I will have to manually enter her Federal deduction because she is claiming 4. I did a dummy check with the correct amount to reflect her deduction and the  paycheck detail still said 0. I did a chat with someone at QB's who said I would have to manually her Federal deductions per the IRS tax table since she is not taking the standard deduction. I would think that QB's desktop should be to differentiate between the two.

Thank you again for the help.